Sunday, December 22, 2024

Plane maker to axe nearly 500 jobs to cut costs

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The aeronautics and space company is making the cuts in a bid to lower costs as profits drop despite its sales rising.

Most of the jobs will be lost in the space arm of the company, where 1,128 positions will be axed.

A further 618 will go from its headquarters, 250 in its air power department and 47 from its connected intelligence department.

Geographically, Western Europe will see the highest number of cuts, with 689 in Germany, 540 in France, 303 in Spain and 34 across the rest of the world.

Airbus directly employs nearly 12,000 people at more than 25 sites in the UK across its commercial, defence and space and helicopters divisions.

Airbus Helicopters is headquartered at Oxford Airport.

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However, the job cuts are fewer than previously anticipated.

In October, the firm had announced that 2,500 positions could go.

At the time, Mike Schoellhorn, CEO of Airbus’s second-largest division by revenue, said the business needed to take action in an “increasingly difficult space market”.

In a statement, he said: “This requires us to become faster, leaner and more competitive.”

Profits at Airbus fell 22 per cent to £1.8 billion in its most recent results which cover the nine months to the end of October, despite sales increasing 7 per cent to £44.5 billion.

The company said it is not planning compulsory redundancies, and nearly all of the roles affected are not connected to specific programmes or projects.

In 2020, the firm announced 15,000 were to go globally, including 1,700 in the UK, as a result of the pandemic when planes were grounded, hitting profits.

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